New project set to bridge the gap in demand and supply in the Gulf

Rana said the total annual consumption of sugar in the Gulf and larger Middle East and North Africa (Mena) region is estimated at 14 million tonnes per annum, but the refining capacity is approximately nine million tonnes. Therefore, there is a gap of 5 million tonnes every year, which is met by imports from other countries.

Export plan

“We are looking at selling 35 per cent of the company’s production in the domestic market, 40 per cent in GCC and remaining in Iran and Iraq,” he noted talking about its export strategy.

Employment opportunity

OSRC will create employment opportunities for 500 people once it starts operation and the initial Omanisation level will be 25 per cent, which will eventually be raised to 92 per cent. This will create employment for Omani citizens, diversify the economy of the country, create many downstream opportunities and above all enhance food security in the country.

The company also plans to sell its sugar as a branded product. “We are working with a branding company at the moment and will announce (the branding plan) in the future.” Also, the company has reached draft agreement on purchase of raw sugar and offtake agreement. The company has already found a partner for offtake arrangement.

The refinery will take advantage of the excellent facilities provided by the strategically located port of Sohar, which include a deepwater port, adjacent container terminal and agro-bulk terminal. The refinery will be wholly- owned by Omani promoters and will produce an Omani branded product for the local, regional and international markets.

The agreement for building the sugar refinery was signed by Nasser Al Hosni, managing director of OSRC with a senior official of Sinolight Corporation here on Sunday.

The signing ceremony was attended by China’s ambassador to Oman Yu Fulong, chief executive officer of Sohar Freezone Jamal Aziz, several senior officials from OSRC, Sohar port and freezone and Chinese embassy in Muscat.